JLT Group Interim Results 2018

26 July 2018

Jardine Lloyd Thompson Group plc (“JLT” or the “Group”) announces its interim results for the six months ended 30 June 2018.*

Group Financial Highlights

  • Total revenue growth of 3% to £713.5m

  • Organic revenue growth of 4%:

    • 4% in Specialty

    • 6% in Reinsurance

    • 4% in Employee Benefits

  • Underlying** trading margin increased by 80 basis points from 15.8% to 16.6%

  • Underlying** profit before tax increased by 10% to £108.8m

  • Reported profit before tax decreased by 9% to £89.4m, reflecting the exceptional costs of the Global Transformation Programme

  • Underlying** diluted earnings per share (EPS) rose 11% from 31.4p to 34.7p

  • Reported diluted EPS decreased by 12% from 31.2p to 27.5p, reflecting the exceptional costs of the Global Transformation Programme

  • Interim cash dividend of 12.7p, up 4.1%

* The Company’s 2017 financial results have been restated following the implementation of IFRS 15 “Revenue from Contracts with Customers” (“IFRS 15”), effective from 1 January 2018, and the Group’s new segment reporting structure, in order to show prior year figures on a comparative basis. A restatement of the Full Year and Half Year 2017 financial results was published by the Company on 3 July 2018 and is available on the Company’s website at http://www.jlt.com/investors.

** Underlying results exclude exceptional items.

Business Highlights

  • The new leadership and management structure in Specialty is driving closer co-ordination and increasing global opportunities. Strong performances were delivered in Latin America, Australia and in the global Energy specialty. 

  • New business wins in Reinsurance across the UK, European and US markets were achieved, alongside the launch of JLT’s next-generation economic capital modelling software, ANSER.

  • Employee Benefits won several global mandates from large multi-national clients, accompanied by good organic revenue growth in Brazil and Asia. UK Employee Benefits remains on track to
    achieve a 15% trading margin in 2019.

  • US Specialty delivered 17% organic revenue growth, and is on track to move into profit in 2019. The business now employs 380 people and continues to attract the best industry practitioners.

  • The Global Transformation Programme delivered benefits of £6.1m in the period and remains on track to deliver annualised benefits of £40m by 2020 for a one-off cost of £45m.

Dominic Burke, Group Chief Executive, commented:

“The Group’s results for the first six months of 2018 represent a robust trading performance. The strategic initiatives we are implementing are already generating tangible benefits for our clients and for the Group. We are trading with real momentum as we move into the second half and we expect to report continued strong organic revenue growth and further financial progress for the full year.”

Download the full interim statement here

Enquiries:

Jardine Lloyd Thompson Group plc

Dominic Burke Group Chief Executive 020 7558 3373

Charles Rozes Group Finance Director 020 7558 3380

Paul Dransfield Head of Investor Relations 020 7528 4933

Brunswick Group LLP

Tom Burns/Dania Saidam 020 7404 5959

A presentation to investors and analysts will take place at 9.00am today at The St Botolph Building, 138 Houndsditch, London, EC3A 7AW. A live webcast of the presentation can be viewed on the Group’s website www.jlt.com.